A daily dose of market updates to guide your investment decisions.
September 1, 2026
Chart of the Day
China's official manufacturing Purchasing Managers’ Index (PMI) reached 49.8 in August, beating market expectations and rebounding from July's reading of 49.2. The slight improvement was driven by a pickup in demand, though the index remained below the 50-mark contraction threshold due to persistent weakness in services activity and broader economic imbalances. Sources: Reuters, Bloomberg
Financial market updates
The USD/PHP exchange rate opened 16 centavos higher at 62.05 last Friday and jumped to morning highs of 62.25 due to the lack of supply.
The local pair initially fell back to the 62.15 area once agent supply appeared at 62.25 and 62.27.
However, renewed dollar buying driven by foreign bond outflows pushed the pair back up, with demand absorbing supply up to 62.27 before remittance-related flows scaled in.
The USD/PHP pair ultimately closed at 62.265, or 37.7 centavos higher day-on-day.
The current support levels of USD/PHP remain at 61.80/62.00, while the resistance levels are 62.30/50.
The local government securities (GS) market traded largely rangebound as investors stayed cautious ahead of US Federal Reserve Chair Kevin Warsh's Jackson Hole speech, which could influence global market direction.
Trading activity was concentrated in the belly of the curve, particularly in FXTNs 7-68 (3Y) and 7-70 (4Y), as inflation concerns discouraged investors from taking on longer-duration exposure.
FXTN 7-68 (3Y) ended 2 basis points (bps) higher at 6.805%, while FXTN 7-70 (4Y) underperformed and closed 6 bps higher at 7.000%. Overall benchmark yields were little changed.
Markets are monitoring global oil supply risks from Russia-Ukraine and Middle East tensions, while attention also turns to next week's Bureau of the Treasury’s auction of Cash Management Bills and Treasury bills totaling PHP 52-80 billion.
The Philippine Stock Exchange index (PSEi) ended 48.25 points lower at 5,956.33 last Friday as relentless foreign selling overwhelmed any support from Wall Street's overnight rebound.
Risk appetite remained firmly subdued following the Bangko Sentral ng Pilipinas rate hike, while persistent peso weakness and softer regional sentiment kept local buyers on the sidelines.
Offshore investors dominated the session, posting a substantial outflow of PHP 3.51 billion, reinforcing the defensive tone heading into the long weekend.
Investors rotated out of heavyweight names such as Bank of the Philippine Islands (-17.36 points), BDO Unibank Inc. (-14.13 points), and Jollibee Foods Corp. (-5.78 points).
Meanwhile, gains were observed in International Container Terminal Services Inc. (+6.89 points), Metropolitan Bank & Trust Co. (+3.43 points), and Ayala Corp. (+2.65 points).
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